Thursday, October 20, 2011

Moonjar Project Submissions

The Moonjar Project is finally coming to an end. We hope that you had a great summer using your Moonjar and maybe some of you have already donated your Share portion. What organization did you give it to? Why are you interested in that organization? What does the organization do in the community?

Maybe some of you are keeping close track of your Spend bank. Have you spent your money on something special? Are you still saving up for something you cannot wait to buy but just need a little more in the Spend bank? Maybe you cannot decide, but are keeping the Spend bank full for when something catches your eye!

What about Save? What are your dreams that your Save Bank will help you achieve? College? A Special Trip? The sky is the limit for your dreams!

Now that you worked over the last six months, tell us about your adventure. How did you make money? How did you divide your money into the Save, Share, Spend Banks? How did you Spend your money on yourself or others? How did you Share your money? Write or Draw your story and enter to win!

Prizes
Grades 1-2
First Prize - $25 Cash
Second Prize - $20 Gift Card
Third Prize – Spartan Sweatshirt

Grades 3-4
First Prize - $50 Cash
Second Prize - $25 Gift Card
Third Prize – Spartan Sweatshirt

Grades 5-6
First Prize - $100 Cash
Second Prize - $50 Gift Card
Third Prize – Spartan Sweatshirt

Entries are due November 2, 2011 and should be given to your teacher. Entry Forms are attached or ask your teacher.

Good luck and Have Fun! And thanks to all of those that have already submitted. We have your entries and loved reading them.

Tuesday, August 9, 2011

Top Things to Know


1. When it comes to teaching kids about money, the sooner the better.Up until they start earning a living, and sometimes well beyond that, kids are apt to spend money like it grows on trees. This lesson will help you put your children on the road to handling money responsibly.

Long before most children can add or subtract, they become aware of the concept of money. Any 4-year-old knows where their parents get money - the ATM, of course. Understanding that parents must work for their money requires a more mature mind, and even then, the learning process has its wrinkles. For example, once he came to understand that his father worked for a living, a 5-year-old asked, "How was work today?" "Fine," the father replied. The child then asked, "Did you get the money?"

2. Once they learn how money works, children often display an instinctive conservatism.Instant gratification aside, once they learn they can buy things they want with money - e.g., candy, toys - many children will begin hoarding every nickel they can get their hands on. How this urge is channeled can determine what kind of financial manager your child will be as an adult.

3. Seeds planted early bear fruit later.It's important to work on your child's financial awareness early on, for once they're teenagers, they are less likely to heed your sage advice. Besides, they're busy doing other things - like spending money.

4. An allowance can be an effective teaching tool.When your kids are young, giving them small amounts of money helps them prepare for the day when the numbers will get bigger.

5. Teenagers and college-age kids have bigger responsibilities.Checking accounts, credit cards and debt are as elemental to the college experience as books and keg parties. Teaching high-schoolers about banking and credit will make them more savvy when they leave the nest.

6. Even investing should be learned early.
High schoolers can and should be taught about the market - using real money.

Monday, August 8, 2011

Update from the Allred's

A while back, I posted about how our family was using the Moonjar as the reason to organize a chores program in our house this summer.  The original post is here.  We've been at it for over a month now and here's a few things we've learned along the way. 

  • The chores have revealed the way our kids currently think about money.  Meaning - their actions and attitudes surrounding the program are telling us how they are wired.  Are they spenders, savers, counters?...  What motivates them?  In our case, the kids are very different.
  • Knowing the differences has helped us guide them individually.  What helps one learn isn't exactly working for the other and vice-versa.
  • As the weeks have passed and paydays have come and gone, the kids are becoming more aware of how their own actions affect their financial freedom the subsequent week.  It has been supremely effective to have one child who blew off chores the previous week have to leave Barnes&Noble empty-handed while her walks out with some item she bought with her own money.
  • In a related note, it has been wonderfully re-affirming to see the wealthier of the two sometimes offer to buy her sis an ice cream cone even though she was under no obligation to do so.  
 We're now spending a good deal of time talking about what our kids will do to share with others this month (monetarily or otherwise) and it has been really fun to do so.  All because of a goofy three part money box.  Pretty cool.

Time to Spend

15 Ways to Teach Kids About Money

by FamilyEducation Staff
Brought to you by National PTA® by Paul Richard
Introducing Kids to Money

Money gives people -- both young and old -- decision-making opportunities. Educating, motivating, and empowering children to become regular savers and investors will enable them to keep more of the money they earn and do more with the money they spend. Everyday spending decisions can have a far more negative impact on children's financial futures than any investment decisions they may ever make. Here are 15 simple ways to help educate children about personal finance and managing money:

1. As soon as children can count, introduce them to money. Take an active role in providing them with information. Observation and repetition are two important ways children learn.

2. Communicate with children as they grow about your values concerning money --- how to save it, how to make it grow, and most importantly, how to spend it wisely.

3. Help children learn the differences between needs, wants, and wishes. This will prepare them for making good spending decisions in the future.

4. Setting goals is fundamental to learning the value of money and saving. Young or old, people rarely reach goals they haven't set. Nearly every toy or other item children ask their parents to buy them can become the object of a goal-setting session. Such goal-setting helps children learn to become responsible for themselves.

5. Introduce children to the value of saving versus spending. Explain and demonstrate the concept of earning interest income on savings. Consider paying interest on money children save at home; children can help calculate the interest and see how fast money accumulates through the power of compound interest. Later on, they also will realize that the quickest way to a good credit rating is a history of regular, successful savings. Some parents even offer to match what children save on their own.

Allowance and Spending Decisions

6. When giving children an allowance, give them the money in denominations that encourage saving. If the amount is $5, give them 5-1-dollar bills and encourage that at least one dollar be set aside in savings. (Saving $5 a week at 6 percent interest compounded quarterly will total about $266 after a year, $1,503 after 5 years, and $3,527 after 10 years!)

7. Take children to a credit union or bank to open their own savings accounts. Beginning the regular savings habit early is one of the keys to savings success. Remember, don't refuse them when they want to withdraw a portion of their savings for a purchase--This may discourage them from saving at all. You can also introduce children to U.S. savings bonds. Bonds are still a good value, costing one-half their face value and earning interest that in some instances will be tax-free if used for a college education. Perhaps more importantly, when given as a gift, bonds will not be spent immediately, reinforcing saving and goal-setting lessons.

8. Keeping good records of money saved, invested, or spent is another important skill young people must learn. To make it easy, use 12 envelopes, 1 for each month, with a larger envelope to hold all the envelopes for the year. Establish this system for each child. Encourage children to place receipts from all purchases in the envelopes and keep notes on what they do with their money.

9. Use regular shopping trips as opportunities to teach children the value of money. Going to the grocery store is often a child's first spending experience. About a third of our take-home pay is spent on grocery and household items. Spending smarter at the grocery store (using coupons, shopping sales, comparing unit prices) can save more than $1,800 a year for a family of four. To help young people understand this lesson, demonstrate how to plan economical meals, avoid waste, and use leftovers efficiently. When you take children to other kinds of stores, explain how to plan purchases in advance and make unit-price comparisons. Show them how to check for value, quality, repairability, warranty, and other consumer concerns. Spending money can be fun and very productive when spending is well-planned. Unplanned spending, as a rule, usually results in 20-30 percent of our money being wasted because we obtain poor value with our purchases.

10. Allow young people to make spending decisions. Whether good or poor, they will learn from their spending choices. You can then initiate an open discussion of spending pros and cons before more spending takes place. Encourage them to use common sense when buying. This means doing research before making major purchases, waiting for the right time to buy, and using the "spending-by-choice" technique. This technique involves selecting at least three other things the money could be spent on setting aside money for one of the items, and then making a choice of which item to purchase.

Buying Smart

11. Show children how to evaluate TV, radio, and print ads for products. Will a product really perform and do what the commercials say? Is a price offered truly a sale price? Are alternative products available that will do a better job, perhaps for less cost, or offer better value? Remind them that if something sounds too good to be true, it usually is.

12. Alert children to the dangers of borrowing and paying interest. If you charge interest on small loans you make to them, they will learn quickly how expensive it is to rent someone else's money for a specified period of time. For instance, paying for a $499 TV over 18 months at $31.85 a month at 18.8 percent interest means the buyer really pays about $575.

13. When using a credit card at a restaurant, take the opportunity to teach children about how credit cards work. Explain to children how to verify the charges, how to calculate the tip, and how to guard against credit card fraud.

14. Be cautious about making credit cards available to young people, even when they are entering college. Credit cards have a message: "spend!" Some students report using the cards for cash advances and also to meet everyday needs, instead of for emergencies (as originally planned). Many of those same students find themselves having to cut back on classes to fit in part-time jobs just to pay for their credit card purchases.

15. Establish a regular schedule for family discussions about finances. This is especially helpful to younger children--it can be the time when they tote up their savings and receive interest. Other discussion topics should include the difference between cash, checks, and credit cards; wise spending habits; how to avoid the use of credit; and the advantages of saving and investment growth. With teenagers, it's also useful to discuss what's happening with the national and local economies, how to economize at home, and alternatives to spending money. All of this information will be important as they take on more responsibility for their own financial well-being.

Adapted from "Dollars and Sense," in the April 1999 issue of Our Children, the official magazine of the National PTA®.






Thursday, August 4, 2011

Summer Update

The Moonjar Project has been an interesting one for my family. We just returned from a family vacation where it was the highlight of discussion. My parents have 15 grandchildren ranging from 25 to 6 months and all want a Moonjar - my sister wants one for the 6 month old to start early! My 25 year old nephew said how challenging it is to plan saving, sharing and spending. We all referred to the old "What I Learned in Kindergarten" referring to the basic things we learn stick with us forever. But, money and how to deal with it is not something that I ever learned in school and everyone agreed. We told everyone about our Vision Board that we list things that we want to accomplish including what we will do with our Moonjars. We told them about the Lacrosse sticks that we "had to have" but now that they are sitting in the garage untouched, maybe we realize that we didn't have to have them! We talk about what we could have done with that money from our Spend bank. We are matching the dollars that the kids put in their Save bank, so we are now talking about what impact we want to have with it. This is almost as hard as actually buying something! The Moonjar challenges us to not only to Save, but to be thoughtful about how we Spend and Share.

Dunn Foundation: 10 Money Tips for Kids

Dunn Foundation: 10 Money Tips for Kids: "I wouldn't call these 'tips' so much as dissertations, but it's no nonsense advice well worth the read. Plus, the non-American English is f..."

Saturday, July 30, 2011

10 Money Tips for Kids

I wouldn't call these "tips" so much as dissertations, but it's no nonsense advice well worth the read.  Plus, the non-American English is fun to read.

http://www.iol.co.za/business/personal-finance/financial-planning/financial/10-money-tips-for-kids-1.1105208

Friday, July 29, 2011

Allowance and Kids: Teaching the Value of Money


This article from Linsey Knerl at ParentingSquad.com offers a unique and interesting twist on how she solved a problem with how her daughter perceived the value of money.  What a great perspective!  The article is shown below....

When my daughter was just six, we began giving her allowance. At the time, I’ll admit that my rationale was a little flawed. She had been helping out with baby diapers, clearing the table, outside chores, laundry, and gopher tasks for almost a year. She enjoyed helping out, but the guilt that I was overworking her took hold. An allowance seemed like the proper way to reward her for her efforts.

A Problem Begins - While she didn’t receive more than a couple of dollars a week, she never wanted to spend it. She would save and save, overflowing her piggy bank and consuming her thoughts. She would often come to the dinner table, counting her money or bragging to us how much she had saved over the past few months.
She would never spend it. There wasn’t much that she wanted. We didn’t have a very large budget for entertainment or novelties, so we knew that it wasn’t because we were overindulging her. She just wasn’t that interested in buying things. I guess I should have been grateful. Then I noticed she quit working as hard.
Chores started to slack around eight years old. When threatened with a decrease in allowance, she responded with a “That’s OK. I have enough money. I really don’t need anymore.” Because she didn’t need money, it didn’t have value. It was a simple dilemma. I hate to say this, but for a moment I was actually disappointed that we weren’t a little more commercialized. If my daughter ever saw something that she wanted, she may have drawn a connection to the power that money could have for her. So I decided to “help her out” a bit.

Our Solution - We devised a movie night. The kids weren’t expected to pay for the movie, but if they wanted candy during the show, they needed to buy it themselves. My daughter loosened the grip on her piggy back and threw in about 50 cents towards the candy stock. Next, I started finding some really great songs for download off the internet. She would beg for her own copy of the songs on a CD for her room. “That will cost you,” I replied. She handed over 50 cents for the cost of a blank CD and $2 more for some extra downloads from her favorite movie soundtrack.
Soon she realized that there was a value to the green stuff wadded up in the bottom of her piggy bank, sock drawer, little pink purse, and anywhere else she could stash it. Money equaled stuff. While at six years old stuff didn’t mean so much, at eight, it was starting to have some worth. We took time to explain what discretionary spending was. We worked out a formula for all future piggy bank deposits to ensure adequate amounts for saving, spending, and sharing. Our daughter was getting excited again.

It Really Works - Chores started picking up. In fact, she started asking for extrachores. Soon she was taking on odd jobs for family, including scooping walks, dog walking, and simple cleaning chores. My daughter was becoming an entrepreneur at nine years old.

What does this all mean for you and your family? It's a simple lesson: Children won't manage money well if they don't value it. Whether the problem is hording cash or overspending, there needs to be a firm foundation for establishing a fair value for the dollar in your home. Starting young and keeping at it can give your child a chance at the best possible financial future!

Monday, July 25, 2011

Ideas that Encourage Saving

Below is a great article we found on About.com.  It was written by Madison DuPaix.  You can see the original article here, but we've copied the high points below.  She offers some really great ideas for encouraging saving and helping parents talk to their kids in ways they will understand.

Match Savings
For every dollar your child saves, offer to put in a matching contribution.  When they are little, you might be able to match 100%.  Once they are older 25% or 50% might be reasonable to encourage them to save.

Open a Savings Account
Encourage him to deposit a portion of money he earns into a savings account and track the interest earned on his account.

Encourage Them to Set Goals
If they want to purchase an expensive toy, hang up a drawing of an empty thermometer. As they save their money, color in the thermometer. They'll be able to track their progress visually.

Give Non-monetary Savings Rewards
Young children may not understand that $10 tomorrow is better than $5 today. Consider rewarding children with things special to them for saving their money: stickers, toys, and special outings can be helpful.

Make a Wish List
Encourage children to identify fun things to spend their money on. For older children, prioritizing the list can be a helpful challenge.

Display a Picture
Hang a picture of a wanted item off their wish list on the wall. If your child is saving for a special purchase, hang up a picture to remind them of what they are working towards.

Save Money in Front of Your Children
Keep your own piggy bank or deposit money in the bank when you are with your children. Explain what you are saving for and your children will mimic your behavior.

Help Them Spend Money
Occasionally, children will get so focused on saving their money, that they won't spend any money along the way. Help them enjoy their money by spending some on small purchases or surprising them by buying something they'd like.

Saturday, July 23, 2011

We're Gonna S-A-V-E!

One of the hardest things for anyone to learn is that sometimes we cannot always have the things we want when we want them -- especially things that we buy.  Plus, important things like new bikes, a special toy, or tickets to a concert can often seem expensive and out of reach to kids.  Below is a neat little video we found that is great for younger kids that teaches about saving.  If your Moonjar user is in first, second, or third grade this would be a great way to start talking about saving.


Tuesday, July 5, 2011

Chores and the Moonjar

The chore chart for one of our kiddos.
Here's a quick update on how we have used the Moonjar to learn some basics about the relationship between work and reward.  Instead of spending the summer grumbling at one another about how and when chores get done, we decided to put it down on paper and link it back to the basics of our Moonjar project.  Here's what our family is doing.

1.) All chores are posted (left).  Each kid has her own sheet with age appropriate things they can do to help around the house. 

2.) Each one of our kids (age 8 and 12) start out with a balance of $5.00 at the beginning of each week.

2.) The chores above the squiggly line are mandatory if they want to keep all of their $5.00. These tasks have to be completed by evening of each day.  We explained "mandatory" like this: these are things you do to show your appreciation for the privilege of being in a family and having a home.  If all the mandatory boxes are checked at the end of the week, they get to keep all of their $5.00.

2a.) For each box unchecked (a daily chore not completed), we deduct $0.25 from their balance.

3.) Everything below the squiggly line is optional.  These are jobs that - frankly - will make mommy and daddy's life a little easier.  The kids can choose to do these if they want to earn extra money toward something they are saving for, for extra spending cash, or to share with others.

4.) Payday is on Sunday night, when the money is deposited into the Moonjar and we total things up.  We try to take some time to talk about how things went that week, what was hard, what was easy, what they will change for next week, and so on.  This has proven to be a great time to let the kids talk about how they are going to use their earnings.  Probably the biggest learning moment has been when there's been a big difference in pay.  This is where we don't really have to say much.  The lesson about work and reward just teaches itself. 

How are things going for you?

Thursday, June 23, 2011

How to Raise a Philanthropist

Here's one for the parents from the Wall Street Journal.  A fantastic look at what's possible and what's practical, regardless of whether the gift is in money (not always practical) or time.  Well worth reading. 

Tuesday, June 21, 2011

How to Use the Moonjar at Dairy Queen

My daughter and I turned a potential argument into a learning moment where we were able to discuss how it feels much different to make decisions with money she earned (she's in control) to having to ask me for it (I'm in control).  Actual conversation below.

Me: Hello?

Daughter: Daddy, can you stop by DQ while you are out and pick up a Blizzard with Oreos for me?

Me: Nah.  We just went there yesterday and besides, I don't have any money with me.

Daughter: (Hand on her hip) Dad!  You mean you don't have any money?!

Me: Whoa, there kiddo.  No need to get all jumpy.  All that leads to is no Blizzards for a long time.

Daughter: (Exasperated sigh) Can you come home and get some money?

Me: (Awash in the light of a great idea) Say, how much money do you have in the spend part of your Moonjar?

Daughter: (long pause) Let me check... uhmmm... $2.58.

Me: Sounds like you have enough to buy your own Blizzard.  Do you still want it?

Daughter: Well, uhmmm, .... YES!  Come pick me up!

Friday, June 10, 2011

My son Tommy came in this morning with a five dollar bill wanting change. I asked why, knowing that I have a huge jar of change on my dresser. He wanted to start dividing up his existing money in the Moonjar! He has set his sights on buying a baseball bag and helmet, so we will see how he does in the next few weeks.

Monday, June 6, 2011

A Moonjar video from New Zealand!

Wow!  First, see if you can find New Zealand on a map.  Did you do it?  Now grab your mom, dad, grandparent or any other adult you love and watch this great video from Phil in New Zealand!

Friday, May 20, 2011

Welcome to the Dunn Moonjar Project!

On Friday, June 3, St. Peter’s students will participate in an assembly during the school day. They will learn about a summer program that all will participate in for prizes to be distributed at the beginning of school in August.

The Dunn Foundation Moonjar is an exciting program meant to teach your child about money and the ideas of Saving, Spending and Sharing. Like reading, writing and arithmetic, teaching children about money and saving is an important and valuable life-skill lesson, which the Dunn Foundation wants to promote at St. Peter’s, starting in kindergarten and running through sixth grade.

Dunn Foundation Moonjars encourage kids to envision their dreams and creatively bring them to life. Dunn Foundation Moonjars offer a visual and tactile beginning for children to understand how to use money and build a strong financial foundation to reach their goals.

Three moneyboxes, one each for Saving, Spending and Sharing act as a teaching tool that connect wish-upon-a-star hopes with conscientious decision making and financial objectives. Dunn Foundation Moonjars will also inspire positive family communication, responsibility and commitment to the larger community. We will also discuss the importance of donating time and talent as pieces of building strong individuals and communities.

Students will bring home their own Dunn Foundation Moonjar on Friday, June 3 and have an understanding of what it means and how they should use it. The Student Council is creating a presentation that will be both informative and entertaining.

Throughout the summer, you will receive seven emails containing information pertaining to the Save, Spend and Share concept. We have also established an interactive web site to help with communication this summer.  You can find it at: http://www.dunnfoundation.blogspot.com. We can share our experiences on the different aspects of Save, Spend and Share and how they affect our child, family and community.

As a final piece, we would like each the students to create a picture or story about their experience over the summer with the Dunn Foundation Moonjar. Each child that enters a picture or story will receive a t-shirt and be eligible to receive additional prizes, based on age groups.

Prizes will include money, to promote the Spend, Share, Save concept, as well as gift certificates, Spartanwear and more! Check your emails for age groups and prize details.